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The Financial Times, citing JPMorgan's analysis, points out that the current price of Bitcoin is significantly higher than its production cost, urging caution regarding this unsustainable price condition. Interested friends should definitely take a look at this article...
JPMorgan's analysis indicates that the production cost of Bitcoin is approximately $27,000, primarily including electricity costs during the mining process. This cost provides support for the price of Bitcoin, but with the upcoming next Bitcoin halving, the production cost is expected to temporarily jump to around $50,000. The Financial Times believes that the recent surge in Bitcoin prices has pushed it far above the production cost, making this situation unsustainable for Bitcoin's past trends.
After the Bitcoin halving, inefficient miners may exit the market, leading to a decrease in computing power and a corresponding reduction in production costs. The Financial Times article suggests that the loss of momentum in price increases and the decline in mining processing power will bring production costs down to around $43,000, providing a new support level for prices after the current frenzy. In simple terms, the Financial Times' analysis suggests that Bitcoin's price will not remain significantly higher than mining costs in the long term.
However, historical data shows that the last time Bitcoin prices approached or fell below mining costs was during the 2022 bear market, leading to the closure of many mining enterprises. In bull market cycles, Bitcoin prices typically remain higher than mining costs, and although mining costs indeed provide robust price support, the evidence for predicting a Bitcoin downturn based on this seems a bit weak. |
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Post time 11-3-2024 07:12:31